NEW DELHI: Home rental platform Cozee Homes has raised Rs 1 crore in a seed funding round from angel investors.

The funding round led by Ramaswamy Varadharajan, former-managing director of Gulfspic, also witnessed participation from Naveen Kumar, Partner, MBM Constructions and Balan from Udhayam group of hotels.

The company plans to use the money to continue its expansion into Bangalore and Chennai, as well as ramp up it’s offering for home owners and tenants, according to Ajay Kumar, co-Founder and CEO of Cozee Homes.

“The home rental market is poised to grow. With the real estate industry struggling with sale of inventory, most buyers are turning into renters," he said.

The comany charges home owners 5-10% of the monthly rent (billed month-on-month) as a fee for management of the property. It also charges its tenants with a one-time service fee at the time of moving into a home.

The platform, founded in 2016, manages 250 properties at present, and handled over Rs 3 crore in gross rentals in financial year 2016-17.

"With 20% growth month-on-month, we are confident of growing 5X in the current financial year," said Kumar.

The home rental market has recently witnessed a lot of traction, with entry of companies such as NestAway and NoBroker. Big online e-commerce players like Quikr also entered this segment with acquisitions of GrabHouse and CommonFloor last year, while Housing.com has re-entered rental business, after closing the business in 2015.